Climate Change Levy (CCL) Rises 1%
22nd April 2016 | Commercial Energy
The Government made its annual increase to the Climate Change Levy (CCL) on April 2016. The levy was originally introduced under the 2000 Finance Act and was designed to encourage users to use less energy or to switch towards renewably sourced power sources: these weren’t taxed until the July 2015 Budget when George Osborne removed this exemption. Now energy from fossil fuel or renewable sources attract the same CCL.
The levy is applied to industrial, commercial, agricultural and public service concerns, but not businesses using small amounts of energy, domestic energy or non-commercial activities of charities. Energy intensive industries (eg steel) have a reduced rate, and the rate doesn’t apply in Northern Ireland.
The new rates are below;
Fuel – 2016 – 2015 – Increase
Electricity – 0.559 p per kwh – 0.554 p per kwh – 0.9%
Gas – 0.195 p per kwh – 0.193 p per kwh – 1.0%
Petroleum gas etc (liquid) – 1.251 p per kg – 1.240 p per kg – 0.9%
Any other taxable commodity – 1.526 p per kg – 1.512 p per kg – 0.9%
More information available at https://www.gove.uk/green-taxes-and-reliefs/climate-change-levy